Identifying Causes of Variation Among Per Capita Incomes of Sub-Saharan African States

Kannuthurai, Vinod
(2014)
Identifying Causes of Variation Among Per Capita Incomes of Sub-Saharan African States.
Undergraduate thesis,
under the direction of Christian Sellar from
Public Policy Leadership,
University of Mississippi.

Abstract

In this work, the author utilized a statistical analysis to assess variations in per capita incomes among sub-Saharan African states. The factors tested include education and healthcare investment, mineral and oil dependence, agricultural dependence, landmass size, population size, level of instability, economic freedom, and political freedom. Although the author found mineral and oil dependence to be the most statistically significant factor in determining variations in per capita income, there was still a great deal of variation among sub-Saharan African countries with mineral and oil dependence. Thus, the author employed a case-study involving Botswana and Zambia, two commodity dependent states with entirely different outcomes. Botswana, employing the developmental state theory and prudent policy choices, utilized its mineral wealth for the greater good of the country. In contrast, Zambia, with a statist and later neoliberal development theory and poor policy choices, spent is mineral wealth mostly enriching a small elite, while excluding the vast majority of Zambia’s population from the benefits of this mineral wealth. Thus, the author determined that the growth of per capita incomes of sub-Saharan African countries relies mostly on intentional development and policy-related choices.